February 09, 2010

DotNetNuke Corp. Lands $8 Million Series B Funding

SAN MATEO, Calif. – February 9, 2010–
DotNetNuke Corp., the company behind the most widely adopted Web
Content Management Platform for Microsoft® .NET, today announced it has
secured an $8 million Series B financing led by new investor UV Partners with participation from existing investors August Capital and Sierra Ventures. The new funds will be used to accelerate product development and expand marketing and sales.

The financing follows a banner year for DotNetNuke Corp., which recently announced
it had signed nearly 500 paying customers and 50 certified commercial
partners following its commercial launch in February of 2009.

Highlights

DotNetNuke Corp. secured an $8 million Series
B financing lead by new investor UV Partners. Existing investors August
Capital and Sierra Ventures also participated in the round which is
meant to accelerate product development and expand marketing and sales.

Demand
for a flexible, cost-effective Web Content Management Platform for
Microsoft .NET resulted in the signing of nearly 500 customers since
DotNetNuke Corp. released its first commercial product in February 2009.

“Web content management solutions continue to grow in importance
and the adoption of open source as a viable alternative to proprietary
solutions continues to increase. We have been impressed by the
execution of the DotNetNuke Corp. team and its ability to capitalize on
the opportunity. The company is rapidly becoming a significant player
in the content management space and its position as a Microsoft .NET
solution gives it a unique position in the competitive landscape.”

“DotNukeNuke had phenomenal market traction during our first
year. We signed nearly 500 customers for our subscription products and
closed nearly 40,000 transactions to 15,000 customers on
Snowcovered.com, our online marketplace for third party add-ons. While
we did not need capital given our revenue traction, we liked the
partnership and the terms so we decided to close a new round. We
welcome and look forward to working with UV Partners.”

“WCM represents one of the fastest-growing areas of ECM and now accounts for more than 25 percent of the ECM software market.”

"WCM
goes beyond the literal management of Web content and offers tools that
allow a company to manage and make money from its Web presence,
especially in areas such as building a customer-centric Web strategy,
marketing, e-commerce and the media.“

Gartner also acknowledges “increased popularity and traction for open-source offerings.”

"Growth
in the content management market continues to be driven by several of
the key priorities for enterprise software spend, including the need to
ensure regulatory compliance and reduce risk, the need to boost
information worker productivity and improve the cost-effectiveness of
document-intensive business processes, and the desire to leverage the
Web to build brand, strengthen customer relationships, and grow
revenue.”

DotNetNuke Corp. is the steward of the DotNetNuke
open source project, the most widely adopted Web Content Management
Platform for building web sites and web applications on Microsoft .NET.
Organizations use DotNetNuke to quickly develop and deploy interactive
and dynamic web sites, intranets, extranets and web applications. The
DotNetNuke platform is available in a free Community and subscription-based Professional, Elite and Elite Premier Editions. DotNetNuke Corp. also operates Snowcovered.com
where users purchase third party software modules and skins. Founded in
2006 and funded by Sierra Ventures and August Capital, DotNetNuke Corp.
is headquartered in San Mateo, Calif. For additional information, visit
www.dotnetnuke.com.

About UV Partners

UV Partners, established in 1986, is a leading early stage venture
capital investment group based in Salt Lake City, Utah. UV Partners
helps entrepreneurs develop early-stage concepts into tomorrow's
industry-leading technology companies. The partners possess diverse but
highly complementary industry and investment backgrounds. They share a
hands-on approach and work collaboratively on each portfolio company
over the life of an investment thereby providing each company with a
broad range of resources, experience, and knowledge.

About August Capital

Founded in 1995, August Capital has funded an extraordinary group
of entrepreneurs who have built significant, long-term value across the
full range of information technologies. These companies represent an
aggregate market capitalization of well over $250 billion, generate in
excess of $75 billion in annual revenue around the world. This success
is a testament to the entrepreneurs themselves, as well as the
fundamental technologies they have created. August Capital has $1.3
billion under management, and has invested in more than 75 companies
including Atheros, Cobalt Networks, Iridigm, Mimosa Systems, Postini,
Seagate, Shopping.com, SixApart and Silicon Image. Recent investments
range from $500,000 to $130 million in information technology
businesses from semiconductors to ecommerce. The firm's partners have
previously invested in a number of ground breaking technology
companies, including Actel, Adaptec, Compaq, Grand Junction, Intuit,
Linear Technology, Microsoft, MMC Networks, Skype, Sun Microsystems,
Sybase, Symantec, and Visio. August Capital is located in Menlo Park,
California. For more information, please visit: www.augustcap.com.